States' policy action shapes the future of distributed solar

WASHINGTON, Aug. 25, 2016 - A new report by the North
Carolina Clean Energy
Technology Center (NCCETC) found a “tremendous amount” of activity among
the 50 U.S. states involving distributed solar policy.

The document, an update of the group’s 50 States of Solar
report for the 2nd quarter,

“We found a tremendous amount of activity across the U.S. in
the last quarter,” says Brian Lips, report co-author and energy policy project
coordinator at NCCETC. “Legislatures, commissions or utilities in almost every
state proposed or adopted policy changes that will shape their distributed
solar markets for years to come. From direct changes to net metering rules, to
rate design revisions, there are many opportunities for state markets to be
weakened or strengthened. States that were once dominant in distributed solar
adoption may not be dominant in the future, just as states that have lagged
behind may quickly jump to the front of the pack.”

The report found that 42 states and the District of Columbia
took some form of solar policy action during the second quarter of 2016.

Here are some of the key Solar Policy Actions in the
quarter:

42
utilities in 25 states plus D.C. had pending or decided requests to increase
monthly fixed charges on all residential customers by at least 10 percent

24
states considered or enacted changes to net metering policies

15
states plus D.C. formally examined or resolved to examine some element of the
value of distributed generation or the costs and benefits of net metering

1
states took policy action on community solar

Eight
utilities in six states proposed adding new or increasing existing charges specific
to rooftop solar customers

Three
states had policy action on third-party solar ownership laws or regulations

Three
states had action on utility-owned rooftop solar policies or programs

Utility proposals to increase residential monthly fixed charges were the most
common type of solar policy and rate design action during the quarter, the
report found, with over one-fifth of all U.S. investor-owned utilities
proposing increases of at least 10 percent.

“We are seeing no sign of decline in requests to increase residential fixed
charges, while residential demand charge proposals have not yet picked up as
many in the industry were expecting. However, in over half of the fixed charge
decisions made this year, utilities were not granted any increase,” says Autumn
Proudlove, report co-author and senior policy analyst at the NCCETC.
A total of 121 state and utility-level distributed solar policy and rate
changes were proposed, pending, or enacted in Q2 2016, the report finds.

New
Hampshire became the next state to begin developing a net metering successor
tariff

A
ballot initiative was launched to contest the Nevada net metering decision and
a recommendation from the Governor’s New Energy Industry Task Force that the
legislature grandfather existing net metering customers.

To view the executive summary of the report, click here. NCCETC is a
public service center administered by the College of Engineering at North
Carolina State University.

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